U-3A-2 1 uil_u3a2-2003.txt FORM U-3A-2 FOR 2003 File No. 1-15995 United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM U-3A-2 Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from the Provisions of the Public Utility Holding Company Act of 1935 To Be Filed Annually Prior to March 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UIL HOLDINGS CORPORATION hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information: 1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF, OTHER THAN ANY EXEMPT WHOLESALE GENERATOR (EWG) OR FOREIGN UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY OR INDIRECTLY HOLDS AN INTEREST. UIL Holdings Corporation ("UIL Holdings") was incorporated under the laws of the State of Connecticut and is a holding company organized to acquire and hold the securities of other corporations. The United Illuminating Company (UI) was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of UIL Holdings. UI is an operating electric public utility engaged in the purchase, transmission, distribution and sale of electricity for residential, commercial and industrial purposes in a service area of about 335 square miles in the southwestern part of the State of Connecticut. United Resources, Inc. ("URI") was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of UIL Holdings. URI serves as the parent corporation for several non-utility businesses, each of which is incorporated separately in Connecticut. A. American Payment Systems, Inc. ("APS") was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of URI. APS provides electronic bill payment services and telephony services to companies throughout the United States. APS recruits and manages retailers to provide this service to the companies' customers who prefer to pay their bills in person. On December 16, 2003, UIL Holdings entered into an agreement to sell APS (excluding the telephony business) to CheckFree Corporation, a leading provider of financial electronic commerce services and products. Under the terms of the agreement, and pending receipt of regulatory approvals and satisfaction of customary closing conditions, the transaction is expected to close during the second quarter of 2004. As a result of the events described above, APS has been categorized as "held for sale" as of December 31, 2003 for financial accounting purposes, and as such, its results are included in discontinued operations in the accompanying consolidated statements of income included herein, for all periods presented. 1. APS Card Services, Inc. ("CSI") was incorporated under the laws of the State of Connecticut and was a wholly-owned subsidiary of APS. CSI markets a prepaid stored value card and was merged into APS on July 31, 2003. 2. Cell Cards of Illinois, LLC. ("CCI") was incorporated under the laws of the State of Illinois and was a 51% majority owned subsidiary of APS. CCI sells prepaid long distance telephone service, prepaid telephone calling cards, and prepaid wireless telephone service. APS and other equity owners of CCI sold all of the equity of CCI to a third party on February 13, 2004. 3. American Payment Systems of California, Inc. was incorporated under the laws of the State of California and is a wholly-owned subsidiary of APS formed to facilitate compliance with the laws of that state with regard to the conduct of the business of APS therein. B. Xcelecom, Inc. ("Xcelecom") was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of URI. Xcelecom serves as the parent corporation for several corporations that provide specialized services in the electrical, communications and data network infrastructure industries. 1. Precision Power, Inc. was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of Xcelecom. Precision Power was engaged in electrical construction and related services for larger commercial, industrial and institutional customers in Connecticut. As of the end of 2000, the operations of Precision Power were combined with those of McPhee Electric LTD, LLC, another subsidiary of Xcelecom. 2. Allan Electric, Inc. was incorporated under the laws of the State of New Jersey and is a wholly-owned subsidiary of Xcelecom. Allan Electric is engaged in electrical construction, intelligent highway system deployment and related services for larger commercial, industrial, governmental and institutional customers in New Jersey. 3. The DataStore, Inc. was incorporated under the laws of the State of New Jersey and is a wholly-owned subsidiary of Xcelecom. The DataStore is engaged in data and communications network infrastructure design, installation and services for commercial, industrial, governmental and institutional customers in New Jersey, Delaware and Pennsylvania. 4. Orlando Diefenderfer Electrical Contractor, Inc. ("ODE") was incorporated under the laws of the State of Pennsylvania and is a wholly-owned subsidiary of Xcelecom. ODE is engaged in electrical construction and related services for larger commercial, industrial, governmental and institutional customers in Pennsylvania. 2 5. JBL Electric, Inc. was incorporated under the laws of the State of New Jersey and is a wholly-owned subsidiary of Allan Electric. JBL Electric is primarily engaged in the construction and installation of cellular towers and large satellite communications systems throughout the states of New Jersey, Delaware, New York and Connecticut. 6. Johnson Electric, Inc. was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of Xcelecom. Johnson Electric is engaged in electrical construction and related services for larger commercial, industrial, governmental and institutional customers in Connecticut. 7. McPhee Electric LTD, LLC was formed under the limited liability company laws of the State of Connecticut and is a wholly-owned subsidiary of Xcelecom. McPhee is engaged in electrical construction and related services for larger commercial, industrial, governmental and institutional customers in Connecticut, Rhode Island, Massachusetts and other New England states. 8. Thermal Energies, Inc. ("TEI") was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of Xcelecom. TEI owns and operates a central heating and cooling plant in one of New Haven, Connecticut's largest commercial office buildings. In addition, TEI holds a 52% ownership share in the Government Center Thermal Energy Partnership (the "Partnership"). The Partnership operates a district heating and cooling facility that serves the City Hall and Hall of Records of the City of New Haven and the adjacent Connecticut Financial Center building. 9. Brite-Way Electric, Inc., was incorporated under the laws of the State of New Jersey and is a wholly-owned subsidiary of Xcelecom, Inc. Brite-Way Electric is engaged in electrical construction for larger commercial, industrial, governmental and institutional customers in New Jersey. 10. J. E. Richards, Inc., was incorporated under the laws of the State of Maryland and is a wholly-owned subsidiary of Xcelecom, Inc. J. E. Richards is engaged in electrical construction for larger commercial, industrial, governmental and institutional customers in Maryland and the Greater Washington, D.C. area. 11. M. J. Daly & Sons, Inc. was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of Xcelecom, Inc. M. J. Daly & Sons is engaged in mechanical construction and fire protection services for commercial, industrial, governmental and institutional customers in Connecticut and Massachusetts. 12. 4-Front Systems, Inc., was incorporated under the laws of the State of North Carolina and is a wholly-owned subsidiary of Xcelecom, Inc. 4-Front Systems, Inc. is engaged in data and communications network infrastructure design, installation and services for commercial, governmental and institutional customers in North Carolina. 3 13. Terry's Electric Incorporated was incorporated under the laws of the State of Florida and is a wholly-owned subsidiary of Xcelecom. Terry's Electric is engaged in electrical construction and related services for larger commercial, industrial, governmental and institutional customers in Florida, Georgia, Texas, Oklahoma and North Carolina. C. United Capital Investments, Inc. ("UCI") was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of URI. UCI participates in business ventures that complement UI's electric transmission and distribution business. 1. UCI has a 25% interest in Cross-Sound Cable Company, LLC (Cross-Sound), a Connecticut limited liability company, which owns and operates a 330-megawatt transmission line (cable) connecting Connecticut and Long Island region of the State of New York under the Long Island Sound. TransEnergieUS Ltd., the project developer and majority owner, is a Delaware corporation and a subsidiary of TransEnergie HQ Inc., the transmission affiliate of Hydro-Quebec (HQ). The cable has been installed and is operating under a Department of Energy Emergency Order dated August 14, 2003, although the cable has yet to achieve commercial operation status pending the resolution of permit issues. 2. Souwestcon Properties, Inc. ("Souwestcon") was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of UCI. Souwestcon was engaged in a real estate development project located in North Haven, Connecticut. The property was sold in 2003 and the entity was dissolved on October 30, 2003. D. United Bridgeport Energy, Inc. ("UBE") was incorporated under the laws of the State of Connecticut and is a wholly-owned subsidiary of URI. UBE holds a 33 1/3% ownership interest, as a minority investor, in Bridgeport Energy LLC, the owner of an Exempt Wholesale Generator ("EWG") merchant wholesale electric generating facility located in Bridgeport, Connecticut. 2. A BRIEF DESCRIPTION OF THE PROPERTIES OF CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES USED FOR THE GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE, OR FOR THE PRODUCTION, TRANSMISSION, AND DISTRIBUTION OF NATURAL OR MANUFACTURED GAS, INDICATING THE LOCATION OF PRINCIPAL GENERATING PLANTS, TRANSMISSION LINES, PRODUCING FIELDS, GAS MANUFACTURING PLANTS, AND ELECTRIC AND GAS DISTRIBUTION FACILITIES, INCLUDING ALL SUCH PROPERTIES WHICH ARE OUTSIDE THE STATE IN WHICH CLAIMANT AND ITS SUBSIDIARIES ARE ORGANIZED AND ALL TRANSMISSION OR PIPELINES WHICH DELIVER OR RECEIVE ELECTRIC ENERGY OR GAS AT THE BORDERS OF SUCH STATE. UIL Holdings does not directly own any property used for the generation, transmission and distribution of electric energy for sale, or for the production, transmission and distribution of natural or manufactured gas. UI owns and operates an electric transmission system consisting of 102 circuit miles of overhead lines and approximately 15 circuit miles of underground lines, all operated at 345 KV or 115 KV and located within or immediately adjacent to the territory served by UI in the southwestern 4 part of the State of Connecticut. These transmission lines are part of the New England transmission grid. A major portion of UI's transmission lines is constructed on railroad right-of-way pursuant to two Transmission line Agreements. One of the agreements expired in May 2000 and a new agreement was reached in June 2003 and applied retroactively. The new agreement expires in May 2030 and will be automatically extended for up to two successive renewal periods of fifteen years each, unless UI provides timely written notice of its election to reject the automatic extension. The other agreement will expire in May 2040. UI owns and operates 25 bulk electric supply substations with a capacity of 1,784,170 KVA and 26 distribution substations with a capacity of 132,270 KVA. UI has 3,233 pole-line miles of overhead distribution lines and 130 conduit-bank miles of underground distribution lines. All of these facilities are located within the State of Connecticut. 3. THE FOLLOWING INFORMATION FOR THE LAST CALENDAR YEAR WITH RESPECT TO CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES: (a) Number of kWh. of electric energy sold (at retail or wholesale), and Mcf. of natural or manufactured gas distributed at retail. ELECTRICITY GAS ----------- --- UIL Holdings None None UI 6,241,236,765 None (b) Number of kWh. of electric energy and Mcf. of natural or manufactured gas distributed at retail outside the State in which each such company is organized. ELECTRICITY GAS ----------- --- UIL Holdings None None UI None None (c) Number of kWh. of electric energy and Mcf. of natural or manufactured gas sold at wholesale outside the State in which each such company is organized, or at the State line. ELECTRICITY GAS ----------- --- UIL Holdings None None UI 478,185,027 None (d) Number of kWh. of electric energy and Mcf. of natural or manufactured gas purchased outside the State in which each such company is organized or at the State line. ELECTRICITY GAS ----------- --- UIL Holdings None None UI 5,763,051,738 None 5 4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH RESPECT TO CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR INDIRECTLY IN AN EWG OR A FOREIGN UTILITY COMPANY, STATING MONETARY AMOUNTS IN UNITED STATES DOLLARS: (a) Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation, transmission and distribution of electric energy for sale or for the distribution at retail of natural or manufactured gas. Bridgeport Energy LLC, 10 Atlantic Street, Bridgeport, Connecticut 06604. This facility is a 520 MW combined-cycle generator. (b) Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held. United Bridgeport Energy, Inc. ("UBE"), a wholly-owned subsidiary of URI, holds a 33.33% ownership interest in Bridgeport Energy LLC, the owner and operator of the facility. (c) Type and amount of capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of any security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company. The capital invested by UIL Holdings in the EWG, through its indirect wholly-owned subsidiary UBE, is approximately $78.2 million of equity as of December 31, 2003. Neither UIL Holdings nor any direct or indirect subsidiary of UIL Holdings has signed any direct or indirect guarantee of the security of the EWG. There is no direct or indirect recourse to UIL Holdings or any other system company for any financial obligation of the EWG. (d) Capitalization and earnings of the EWG or foreign utility company during the reporting period. The capitalization of the EWG on December 31, 2003 was approximately $232.9 million. The loss for the EWG during the fiscal period ending December 31, 2003 was approximately $4.7 million. (e) Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s). None 6 The above-named claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 27th day of February, 2004. UIL HOLDINGS CORPORATION By: /s/ Louis J. Paglia ------------------------------------- Louis J. Paglia Executive Vice President and Chief Financial Officer (Corporate seal) Attest: /s/ Susan E. Allen ---------------------------------- Susan E. Allen Secretary Name, title and address of officer to whom notices and correspondences concerning this statement should be addressed: Louis J. Paglia Executive Vice President Chief Financial Officer 157 Church Street New Haven, Connecticut 06510 7 EXHIBIT A See attached consolidating statement of income and surplus of the claimant and its subsidiary companies for the last calendar year, together with a consolidating balance sheet of claimant and its subsidiary companies as of the close of such calendar year. 8 UIL HOLDINGS CORPORATION CONSOLIDATING STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2003 THOUSANDS OF DOLLARS
The United UIL United Illuminating Company Holdings Resources, Inc. -------------------------- ------------- ------------------- OPERATING REVENUES Utility $ 669,620 $ - $ - Non-utility businesses - - 21 -------------------------- ------------- ------------------- Total Operating Revenues 669,620 - 21 -------------------------- ------------- ------------------- OPERATING EXPENSES Operation Fuel and energy 272,673 - - Operation and maintenance 185,456 (70) 2,927 Depreciation and amortization 77,463 - - Taxes - other than income taxes 39,311 4 1 -------------------------- ------------- ------------------- Total Operating Expenses 574,903 (66) 2,928 -------------------------- ------------- ------------------- OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS 94,717 66 (2,907) -------------------------- ------------- ------------------- OTHER INCOME AND (DEDUCTIONS), NET 5,526 29,036 30 -------------------------- ------------- ------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INTEREST CHARGES AND INCOME TAXES 100,243 29,102 (2,877) -------------------------- ------------- ------------------- INTEREST CHARGES, NET Interest on long-term debt 20,100 5,490 - Other interest, net 688 1,694 1,050 -------------------------- ------------- ------------------- 20,788 7,184 1,050 Amortization of debt expense and redemption premiums 1,267 - - -------------------------- ------------- ------------------- Interest Charges, net 22,055 7,184 1,050 -------------------------- ------------- ------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 78,188 21,918 (3,927) -------------------------- ------------- ------------------- INCOME TAXES 39,519 (1,591) (1,604) -------------------------- ------------- ------------------- NET INCOME (LOSS) FROM CONTINUING OPERATIONS 38,669 23,509 (2,323) DISCONTINUED OPERATIONS, NET OF TAXES - - - -------------------------- ------------- ------------------- NET INCOME (LOSS) AND INCOME (LOSS) APPLICABLE TO COMMON STOCK $ 38,669 $ 23,509 $ (2,323) ========================== ============= ===================
United Capital United Bridgeport American Payment Investments, Inc. Energy Inc. Systems, Inc. --------------------- ---------------------- ---------------------- OPERATING REVENUES Utility $ - $ - $ - Non-utility businesses - - - --------------------- ---------------------- ---------------------- Total Operating Revenues - - - --------------------- ---------------------- ---------------------- OPERATING EXPENSES Operation Fuel and energy - - - Operation and maintenance 368 17 - Depreciation and amortization - - - Taxes - other than income taxes 15 1 - --------------------- ---------------------- ---------------------- Total Operating Expenses 383 18 - --------------------- ---------------------- ---------------------- OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS (383) (18) - --------------------- ---------------------- ---------------------- OTHER INCOME AND (DEDUCTIONS), NET (681) (1,647) - --------------------- ---------------------- ---------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INTEREST CHARGES AND INCOME TAXES (1,064) (1,665) - --------------------- ---------------------- ---------------------- INTEREST CHARGES, NET Interest on long-term debt - - - Other interest, net - 2,032 - --------------------- ---------------------- ---------------------- - 2,032 - Amortization of debt expense and redemption premiums - - - --------------------- ---------------------- ---------------------- Interest Charges, net - 2,032 - --------------------- ---------------------- ---------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (1,064) (3,697) - --------------------- ---------------------- ---------------------- INCOME TAXES (426) (1,510) - --------------------- ---------------------- ---------------------- NET INCOME (LOSS) FROM CONTINUING OPERATIONS (638) (2,187) - DISCONTINUED OPERATIONS, NET OF TAXES - - (6,251) --------------------- ---------------------- ---------------------- NET INCOME (LOSS) AND INCOME (LOSS) APPLICABLE TO COMMON STOCK $ (638) $ (2,187) $ (6,251) ===================== ====================== ======================
Consolidated UIL Xcelecom, Inc. Eliminations Consolidated ------------------ --------------- ---------------- OPERATING REVENUES Utility $ - $ - $ 669,620 Non-utility businesses 294,036 - 294,057 ------------------ --------------- ---------------- Total Operating Revenues 294,036 - 963,677 ------------------ --------------- ---------------- OPERATING EXPENSES Operation Fuel and energy - - 272,673 Operation and maintenance 290,022 - 478,720 Depreciation and amortization 4,776 - 82,239 Taxes - other than income taxes 1,756 - 41,088 ------------------ --------------- ---------------- Total Operating Expenses 296,554 - 874,720 ------------------ --------------- ---------------- OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS (2,518) - 88,957 ------------------ --------------- ---------------- OTHER INCOME AND (DEDUCTIONS), NET 475 (29,449) 3,290 ------------------ --------------- ---------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INTEREST CHARGES AND INCOME TAXES (2,043) (29,449) 92,247 ------------------ --------------- ---------------- INTEREST CHARGES, NET Interest on long-term debt - - 25,590 Other interest, net 575 (3,636) 2,403 ------------------ --------------- ---------------- 575 (3,636) 27,993 Amortization of debt expense and redemption premiums - - 1,267 ------------------ --------------- ---------------- Interest Charges, net 575 (3,636) 29,260 ------------------ --------------- ---------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (2,618) (25,813) 62,987 ------------------ --------------- ---------------- INCOME TAXES (938) - 33,450 ------------------ --------------- ---------------- NET INCOME (LOSS) FROM CONTINUING OPERATIONS (1,680) (25,813) 29,537 DISCONTINUED OPERATIONS, NET OF TAXES - - (6,251) ------------------ --------------- ---------------- NET INCOME (LOSS) AND INCOME (LOSS) APPLICABLE TO COMMON STOCK $ (1,680) $ (25,813) $ 23,286 ================== =============== ================
UIL HOLDINGS CORPORATION CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 THOUSANDS OF DOLLARS ASSETS
The United United Illuminating UIL Resources Company Holdings Inc. -------------------- -------------- -------------- Current Assets Unrestricted cash and temporary cash investments $ 24,460 $ 111 $ 7 Restricted cash 1,092 - - Utility accounts receivable, less allowance of $1,654 54,780 - - Other accounts receivable, less allowance of $1,648 21,789 73,712 3,826 Unbilled revenues 24,265 - - Materials and supplies, at average cost 1,924 - - Prepayments 2,897 4,442 1,279 Current assets of discontinued operations held for sale - - - Other - - - -------------------- -------------- -------------- Total 131,207 78,265 5,112 -------------------- -------------- -------------- Other Property and Investments Investment in United Bridgeport Energy facility - - - Other 4,383 357,734 265,792 -------------------- -------------- -------------- Total 4,383 357,734 265,792 -------------------- -------------- -------------- Property, Plant and Equipment at original cost In service 751,759 - - Less, accumulated depreciation 265,171 - - -------------------- -------------- -------------- 486,588 - - Construction work in progress 36,467 - - -------------------- -------------- -------------- Net Property, Plant and Equipment 523,055 - - -------------------- -------------- -------------- Regulatory Assets Nuclear plant investments-above market 436,505 - - Income taxes due principally to book-tax differences 98,116 - - Long-term purchase power contracts - above market 88,024 - - Connecticut Yankee 51,579 - - Unamortized redemption costs 19,325 - - Other 43,259 - - -------------------- -------------- -------------- Total 736,808 - - -------------------- -------------- -------------- Deferred Charges Goodwill - - - Unamortized debt issuance expenses 6,137 533 - Prepaid Pension 43,927 - - Long-term receivable - Cross Sound Cable Project - 23,986 - Other long-term receivable 13,575 - - Other 1,036 - - -------------------- -------------- -------------- Total 64,675 24,519 - -------------------- -------------- -------------- -------------------- -------------- -------------- Long-term assets of discontinued operations held for sale - - - -------------------- -------------- -------------- Total Assets $ 1,460,128 $ 460,518 $ 270,904 ==================== ============== ==============
United United Capital Bridgeport American Payment Investments, Inc. Energy, Inc. Systems, Inc. -------------------- -------------- ---------------------- Current Assets Unrestricted cash and temporary cash investments $ 88 $ (17) $ - Restricted cash - - - Utility accounts receivable, less allowance of $1,654 - - - Other accounts receivable, less allowance of $1,648 2 42 - Unbilled revenues - - - Materials and supplies, at average cost - - - Prepayments 33 (1,135) - Current assets of discontinued operations held for sale - - 102,126 Other - - - -------------------- -------------- ---------------------- Total 123 (1,110) 102,126 -------------------- -------------- ---------------------- Other Property and Investments Investment in United Bridgeport Energy facility - 82,090 - Other 15,847 - - -------------------- -------------- ---------------------- Total 15,847 82,090 - -------------------- -------------- ---------------------- Property, Plant and Equipment at original cost In service - - - Less, accumulated depreciation - - - -------------------- -------------- ---------------------- - - - Construction work in progress - - - -------------------- -------------- ---------------------- Net Property, Plant and Equipment - - - -------------------- -------------- ---------------------- Regulatory Assets Nuclear plant investments-above market - - - Income taxes due principally to book-tax differences - - - Long-term purchase power contracts - above market - - - Connecticut Yankee - - - Unamortized redemption costs - - - Other - - - -------------------- -------------- ---------------------- Total - - - -------------------- -------------- ---------------------- Deferred Charges Goodwill - - - Unamortized debt issuance expenses - - - Prepaid Pension - - - Long-term receivable - Cross Sound Cable Project - - - Other long-term receivable - - - Other - - - -------------------- -------------- ---------------------- Total - - - -------------------- -------------- ---------------------- -------------------- -------------- ---------------------- Long-term assets of discontinued operations held for sale - - 17,930 -------------------- -------------- ---------------------- Total Assets $ 15,970 $ 80,980 $ 120,056 ==================== ============== ======================
UIL Xcelecom Holdings Consolidated Eliminations Consolidated ---------------- --------------- ---------------- Current Assets Unrestricted cash and temporary cash investments $ 3,965 $ - $ 28,614 Restricted cash 292 - 1,384 Utility accounts receivable, less allowance of $1,654 - - 54,780 Other accounts receivable, less allowance of $1,648 72,522 (91,361) 80,532 Unbilled revenues 7,981 - 32,246 Materials and supplies, at average cost 2,534 - 4,458 Prepayments 1,153 - 8,669 Current assets of discontinued operations held for sale - 205 102,331 Other 1,323 - 1,323 ---------------- ---------------- ---------------- Total 89,770 (91,156) 314,337 ---------------- --------------- ---------------- Other Property and Investments Investment in United Bridgeport Energy facility - - 82,090 Other 25 (623,498) 20,283 ---------------- --------------- ---------------- Total 25 (623,498) 102,373 ---------------- --------------- ---------------- Property, Plant and Equipment at original cost In service 32,650 - 784,409 Less, accumulated depreciation 20,982 - 286,153 ---------------- --------------- ---------------- 11,668 - 498,256 Construction work in progress - - 36,467 ---------------- --------------- ---------------- Net Property, Plant and Equipment 11,668 - 534,723 ---------------- --------------- ---------------- Regulatory Assets Nuclear plant investments-above market - - 436,505 Income taxes due principally to book-tax differences - - 98,116 Long-term purchase power contracts - above market - - 88,024 Connecticut Yankee - - 51,579 Unamortized redemption costs - - 19,325 Other - - 43,259 ---------------- --------------- ---------------- Total - - 736,808 ---------------- --------------- ---------------- Deferred Charges Goodwill 68,554 - 68,554 Unamortized debt issuance expenses - - 6,670 Prepaid Pension - - 43,927 Long-term receivable - Cross Sound Cable Project - - 23,986 Other long-term receivable - - 13,575 Other 7,854 (6,770) 2,120 ---------------- --------------- ---------------- Total 76,408 (6,770) 158,832 ---------------- --------------- ---------------- ---------------- --------------- ---------------- Long-term assets of discontinued operations held for sale - - 17,930 ---------------- --------------- ---------------- Total Assets $ 177,871 $ (721,424) $ 1,865,003 ================ =============== ================
UIL HOLDINGS CORPORATION CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 THOUSANDS OF DOLLARS LIABILITIES AND CAPITALIZATION
The United United Illuminating UIL Resources Company Holdings Inc. -------------- -------------- -------------- Current Liabilities Notes payable $ - $ 77,762 $ 58,296 Accounts payable 36,002 765 312 Dividends payable 10,415 10,299 - Accrued liabilities 41,819 28 (2) Deferred revenues-nonutility businesses - - - Taxes accrued - 1,214 - Interest accrued 4,243 2,115 - Obligations under capital leases 14,815 - - Current liabilities of discontinued operations held for sale - - - -------------- -------------- -------------- Total 107,294 92,183 58,606 -------------- -------------- -------------- Noncurrent Liabilities Purchase power contract obligation 88,024 - - Pension accrued 8,166 - - Connecticut Yankee contract obligation 47,213 - - Long-term notes payable - - 6,742 Other 18,107 - - -------------- -------------- -------------- Total 161,510 - 6,742 -------------- -------------- -------------- Deferred Income Taxes 332,317 - - -------------- -------------- -------------- Regulatory Liabilities Accumulated deferred investment tax credits 12,813 - - Deferred gains on sale of property 33,679 - - Customer refund 5 - - Other 19,170 - - -------------- -------------- -------------- Total regulatory Liabilities 65,667 - - -------------- -------------- -------------- Long-term liabilities of discontinued operations held for sale - - - -------------- -------------- -------------- Commitments and Contingencies Capitalization Long-term debt 420,460 75,000 - Common stock equity Common stock 1 297,321 1 Paid-in capital 253,137 4,413 226,715 Capital stock expense - (2,170) - Unearned employee stock ownership plan equity - (5,461) - Unearned compensation - (335) - Accumulated other comprehensive loss (496) - - Retained earnings 120,238 (433) (21,160) -------------- -------------- -------------- 372,880 293,335 205,556 -------------- -------------- -------------- Total Capitalization 793,340 368,335 205,556 -------------- -------------- -------------- Total Liabilities and Capitalization $ 1,460,128 $ 460,518 $ 270,904 ============== ============== ==============
United United Capital Bridgeport American Payment Investments, Inc. Energy, Inc. Systems, Inc. -------------------- --------------- ---------------------- Current Liabilities Notes payable $ - $ - $ - Accounts payable 743 3,109 - Dividends payable - - - Accrued liabilities - - - Deferred revenues-nonutility businesses - - - Taxes accrued - - - Interest accrued - - - Obligations under capital leases - - - Current liabilities of discontinued operations held for sale - - 96,439 -------------------- --------------- ---------------------- Total 743 3,109 96,439 -------------------- --------------- ---------------------- Noncurrent Liabilities Purchase power contract obligation - - - Pension accrued - - - Connecticut Yankee contract obligation - - - Long-term notes payable - 54,162 - Other - - - -------------------- --------------- ---------------------- Total - 54,162 - -------------------- --------------- ---------------------- Deferred Income Taxes (1,458) - - -------------------- --------------- ---------------------- Regulatory Liabilities Accumulated deferred investment tax credits - - - Deferred gains on sale of property - - - Customer refund - - - Other - - - -------------------- --------------- ---------------------- Total regulatory Liabilities - - - -------------------- --------------- ---------------------- Long-term liabilities of discontinued operations held for sale - - 921 -------------------- --------------- ---------------------- Commitments and Contingencies Capitalization Long-term debt - - - Common stock equity Common stock - 1 1 Paid-in capital 25,161 24,069 36,471 Capital stock expense - - - Unearned employee stock ownership plan equity - - - Unearned compensation - - - Accumulated other comprehensive loss - - - Retained earnings (8,476) (361) (13,776) -------------------- --------------- ---------------------- 16,685 23,709 22,696 -------------------- --------------- ---------------------- Total Capitalization 16,685 23,709 22,696 -------------------- --------------- ---------------------- Total Liabilities and Capitalization $ 15,970 $ 80,980 $ 120,056 ==================== =============== ======================
UIL Xcelecom Holdings Consolidated Eliminations Consolidated --------------- -------------- --------------- Current Liabilities Notes payable $ 661 $ (71,558) $ 65,161 Accounts payable 1,443 (5,645) 36,729 Dividends payable - (10,415) 10,299 Accrued liabilities 20,794 - 62,639 Deferred revenues-nonutility businesses 14,957 - 14,957 Taxes accrued - - 1,214 Interest accrued - - 6,358 Obligations under capital leases - - 14,815 Current liabilities of discontinued operations held for sale - (3,538) 92,901 --------------- -------------- --------------- Total 37,855 (91,156) 305,073 --------------- -------------- --------------- Noncurrent Liabilities Purchase power contract obligation - - 88,024 Pension accrued - - 8,166 Connecticut Yankee contract obligation - - 47,213 Long-term notes payable 9,867 (60,293) 10,478 Other 79 (612) 17,574 --------------- -------------- --------------- Total 9,946 (60,905) 171,455 --------------- -------------- --------------- Deferred Income Taxes 2,380 - 333,239 --------------- -------------- --------------- Regulatory Liabilities Accumulated deferred investment tax credits - - 12,813 Deferred gains on sale of property - - 33,679 Customer refund - - 5 Other 414 - 19,584 --------------- -------------- --------------- Total regulatory Liabilities 414 - 66,081 --------------- -------------- --------------- Long-term liabilities of discontinued operations held for sale - - 921 --------------- -------------- --------------- Commitments and Contingencies Capitalization Long-term debt - - 495,460 Common stock equity Common stock 2 (6) 297,321 Paid-in capital 125,925 (691,478) 4,413 Capital stock expense - - (2,170) Unearned employee stock ownership plan equity - - (5,461) Unearned compensation - - (335) Accumulated other comprehensive loss - - (496) Retained earnings 1,349 122,121 199,502 --------------- -------------- --------------- 127,276 (569,363) 492,774 --------------- -------------- --------------- Total Capitalization 127,276 (569,363) 988,234 --------------- -------------- --------------- Total Liabilities and Capitalization $ 177,871 $ (721,424) $ 1,865,003 =============== ============== ===============
UIL HOLDINGS CORPORATION CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 THOUSANDS OF DOLLARS
The United United Resources Illuminating Company UIL Holdings Inc. -------------------------- ---------------- ----------------------- BALANCE, JANUARY 1 $ 148,219 $ 17,219 $ (18,837) Net income (loss) 38,669 23,509 (2,323) -------------------------- ---------------- ----------------------- Total 186,888 40,728 (21,160) -------------------------- ---------------- ----------------------- Deduct Cash Dividends Declared Common stock 66,650 41,161 - -------------------------- ---------------- ----------------------- Total 66,650 41,161 - -------------------------- ---------------- ----------------------- BALANCE, DECEMBER 31 $ 120,238 $ (433) $ (21,160) ========================== ================ =======================
United Capital United American Payment Investments, Inc. Bridgeport Energy, Inc. Systems, Inc. --------------------- ---------------------------- ---------------------------- BALANCE, JANUARY 1 $ (7,838) $ 1,826 $ (7,525) Net income (loss) (638) (2,187) (6,251) --------------------- ---------------------------- ---------------------------- Total (8,476) (361) (13,776) --------------------- ---------------------------- ---------------------------- Deduct Cash Dividends Declared Common stock - - --------------------- ---------------------------- ---------------------------- Total - - - --------------------- ---------------------------- ---------------------------- BALANCE, DECEMBER 31 $ (8,476) $ (361) $ (13,776) ===================== ============================ ============================
Xcelecom UIL Consolidated Eliminations Consolidated ----------------- ---------------- ----------------- BALANCE, JANUARY 1 $ 3,029 $ 81,284 $ 217,377 Net income (loss) (1,680) (25,813) 23,286 ----------------- ---------------- ----------------- Total 1,349 55,471 240,663 ----------------- ---------------- ----------------- Deduct Cash Dividends Declared Common stock - (66,650) 41,161 ----------------- ---------------- ----------------- Total - (66,650) 41,161 ----------------- ---------------- ----------------- BALANCE, DECEMBER 31 $ 1,349 $ 122,121 $ 199,502 ================= ================ =================
EXHIBIT B An organizational chart showing the relationship of each EWG or foreign utility company to associate companies in the holding company system. --------------------------------- UIL Holdings Corporation --------------------------------- 100% --------------------------------- United Resources, Inc. --------------------------------- 100% --------------------------------- ------------------ United Bridgeport Energy, Inc. Unrelated Persons --------------------------------- ------------------ 33% 67% -------------------------- Bridgeport Energy LLC (EWG) -------------------------- 9